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DIVISIOL B Menational Banking&Finance Studies 7. Compared to the accrual basis of accounting, the cash basis of accounting overstates income by the net increase during the accounting period of the a. b. C. d. No No Yes Yes No Yes No Yes Gregg Corp. reported revenue of $1,650,000 in its accrual basis income statement for the year ended June 30, 2018. Additional information was as follows: 8. $400,000 530,000 15,000 Accounts receivable June 30, 2017 Accounts receivable June 30, 2018 Uncollectible accounts written off during the fiscal year Under the cash basis, Gregg should report revenue of a. $1,235,000. b. $1,250,000. c. $1,505,000. d. $1,535,000. Jim Yount, M.D, keeps his accounting records on the cash basis, During 2018, Dr. Yount collected 390,000 from his patients. At December 31,2017, Dr. Yount had accounts receivable of $40,000. At December 31, 2018, Dr. Yount had accounts receivable of $70,000 and unearned revenue of S10,000. On the accrual basis, how much was Dr. Yount's patient service revenue for 2018 a. $350,000. b $410,000. c. $420,000. d. $430,000 10. Which of the following is the first step to be taken by a company deciding to convert to IFRS? a. b. c. Preparing an opening balance sheet at the date of transition Identifying the timing of first IFRS statement Selecting accounting principles that comply with IFRS

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